Avantair Ceases Operations, Seeks New Financing

Piaggio Avanti fractional provider Avantair shut down yesterday and furloughed employees as it “seeks alternative financing arrangements that it hopes will enable it to resume operations."

Clearwater, Fla.-based Piaggio Avanti fractional provider Avantair shut down yesterday and furloughed employees as it “seeks alternative financing arrangements that it hopes will enable it to resume operations as quickly and efficiently as possible,” according to an 8-K SEC filing. Employees were also notified that “the company will not be in a position to fund payroll on June 28,” meaning they will not be paid for time worked since June 8.

Yesterday the company said in a statement, “Avantair conducted a furlough of its employees as it addresses liquidity issues. It has requested that several specialized employees remain with the company voluntarily as it pursues alternative financing arrangements. It is hopeful that it will soon be in a position to resume operations.”

The company also received notice on Monday of a customer class-action lawsuit, alleging that it has not met contractual service obligations. In addition, Avantair is now in breach of a lease agreement for its six core airplanes, as well as their engines, with their repossession by lessors Midsouth Services and Clear Aircraft a possibility.

Avantair’s fleet of 56 Avanti twin turboprops has been grounded since June 6 following allegations that the company was not properly tracking time-controlled parts on its aircraft. More…